Dell may hit acquisition trail as profits soar

PC manufacturer Dell saw its profits nearly triple in the final quarter of 2010, posting a net income of $927m (£573m), up from $334m for the same period in 2009.

The company attributed its strong showing to a combination of high demand from corporate customers and the lower cost of components.

The company saw its profit nearly triple in the final quarter of 2010, posting a net income of $927m (£573m); up from $334m year on year.

Meanwhile, Dell's full-year net income almost doubled, rising to $2.6bn from $1.4bn in the previous year.

Dell said that demand for hardware from enterprises and SMEs had picked up over the year, with many firms, for example, electing to refresh their PCs as they upgade from Windows XP to Windows 7.

Chairman and chief executive Michael Dell hinted that the company will look to build on its strong 2010 performance by acquiring other companies, further stoking speculation that his firm is considering a bid for chip manufacturer AMD.

"We remain focused on developing and acquiring new technologies and capabilities, and our IT solutions portfolio has never been stronger," said Dell.

According to research firm Gartner, Dell is currently the third largest PC manufacturer in Western Europe.